Reliance Forays Into Fashion E-Tailing
Mukesh Ambani-led Reliance Industries has entered into ecommerce fashion retail though a platform called ‘AJIO’, targeting India’s online spenders with high-margin, curated fashion. The portal, named after its telecom unit Reliance Jio and upcoming digital wallet Jio Money, has been tested on its employees for the last three months.
The diverse group with interests in telecom, media and petroleum is already one of the country’s largest retailer and operates department chain Reliance Trends and Reliance Brands, which has partnered more than a dozen premium international labels including Diesel and Superdry.
However, the new venture will mainly focus on designer wear and high-fashion global brands to differentiate itself in the cluttered online apparel market driven mostly by discounts.
“We will leverage the Jio ecosystem and its network for delivery. This is part of our omni-channel strategy and we aim to reach 15,000 pin codes in the next two months,” Sanjay Mehra, chief executive, AJIO said.
The company will sell nearly 200 brands that they have already partnered, including Cross Jeans from Turkey, Australia’s Holster and MDS of Singapore. “About 60 per cent of our merchandise will be unique and our model will be an inventory-based marketplace,” Mehra, said.
The group’s entry into online fashion retail comes against the backdrop of a recent government rule that capped sourcing and discounting by players that have foreign investors.